When it comes to large projects, teams often feel overwhelmed because they lack adequate resources to complete key objectives. Whether it’s evaluating current software and processes or transitioning accounting and finance departments from administrative to strategic planners, many teams need short-term assistance to handle the added project workload. Not to mention teams greatly benefit from the expertise outside consultants bring to the table.
Lavoie CPA can become an extension of your current team or resource your projects to help you achieve your goals and objectives. We help your team to focus on their core day to day responsibilities while keeping projects on time and on budget.
What is Project-Based Accounting?
Project-based accounting applies principles of accounting to a specific project, monitoring key project vitals like budget, billing and overall profitability. With project-based accounting, your team can access a clearer vision of the projects that add value and improve revenue. We work with our clients to outline project objectives, establish deliverables, set deadlines and evaluate project results.
Whether for short-term controller services, a revamp of operations or a redesign of month-end-close, we provide the solutions to accurately track project costs. Our talented, multi-faceted team members integrate well into existing organizations and help drive process improvements while helping keep projects within budget.
Project-Based vs General Accounting
Project-based accounting is typically limited in duration and has a different scope relative to general accounting services. Projects may take on a different structure and planning while consisting of a set of deliverables upon project completion.
General accounting services tend to be ongoing in nature and encompass routine tasks and procedures. While there are overlaps between projects and general accounting services, projects require special tracking to illustrate financial performance.
Benefits of Project-Based Solutions
When faced with critical upcoming projects, partnering with Lavoie is an efficient and reliable way to scale your resources, bring greater expertise to the table and complete both project tasks as well as your team’s existing workload.
Additional resources to improve accounting processes and reduce stress on existing staff members are among the many benefits of our project solutions. Other benefits include:
Refocus on revenue generation
Let Lavoie manage accounting processes and refocus existing staff members on revenue-generating activities.
Identify cost-saving opportunities
Leverage accounting efficiencies to improve budgets, identify wastes and reduce expenses.
Make better decisions
Get the financial reports, dashboards and metrics necessary to make effective decisions in a timely manner
Move existing accounting and finance personnel into new roles or assign them new business value-added tasks while we handle routine accounting processes.
Reduce overhead costs
Lower the labor hours needed to perform routine accounting processes through automation, cloud-based applications and outsourced accounting professionals.
Project-Based Accounting Services
Accurately accounting for project revenues and costs is integral for improving operations, while maximizing customer satisfaction and shareholder value. We are adept at tracking short-term and long-term projects and offer a range of project-based services, including:
Interim controller/CFO services
Whether clients need controller or CFO expertise during an employment search, or as part of a new role within their organizations, we can help fill the gap and provide the leadership and technical competence to lead accounting operations. These projects typically encompass all facets of operational accounting, along with the skillsets to develop accounting treatments and provide strategic guidance.
Bank account reconciliations are among the most important controls within any organization, and we have the tools and personnel to make sure cash accounts are accurately accounted for. We also have the expertise to perform other types of reconciliation projects, such as inter-company accounts payable and receivable reconciliations. Whether reconciling debt schedules to liability accounts or prepaid schedules to balance sheet accounts, we have the insight to add value.
Software system review and recommendation
We work with a variety of cloud-based applications to provide service to our clients. As such, we are adept at reviewing clients’ software systems and making recommendations for improvements. This includes evaluating general ledger processes, payroll and financial statement preparation. Whether accounting for new system implementation costs or for continued licensing agreements, we can help clients take their systems to the next level cost-effectively.
Process review and optimization
Process excellence is critical for gaining a competitive advantage, removing waste from systems and optimizing systems to for continued growth and success. Our personnel our adept at identifying inefficiencies, developing corrective actions and quantifying the dollars saved, by implementing solutions. Quality is essential for improving internal and external customer experiences.
Enhanced reporting setup and support
Clients gain access to a myriad of cloud-based applications with standard and customized reporting options. We work with clients to identify the metrics, report displays and dashboards needed to optimize their project accounting. Throughout engagements, we support clients helping them to get the most from their accounting systems.
When to Use Project-Based Accounting
If clients need extra resources in terms of personnel, expertise or software applications, then it’s ideal to use project-based accounting services. Teaming up with Lavoie yields a myriad of positive results, ranging from more accurate project accounting to lower overhead costs and better management decision-making. We help clients assess their project requirements and come up with workflows and reporting to track projects from inception to conclusion.
Process and Flow for Project-Based Accounting
The requirements for project-based accounting are variable and contingent on the scope and nature of each client’s operations. We identify milestones and establish timeframes based on the needs of our clients. From the onset of engagements, we set objectives and agree upon the reporting, services and deliverables necessary to help our clients account for projects and make better decisions. Each engagement is designed to add value regardless of the duration.
Project Accounting Principals
For each project, we implement core accounting principles to deliver the very best results for our clients. Each of the categories below illustrates how project accounting is performed and what some deliverables are relative to customer requirements.
- Separate accounting system: Typically project costs are tracked in Excel or in separate modules within general ledger accounting systems. However, projects can also be tracked in separate accounting systems. Oftentimes budget comparisons and general ledger expense activity are used in tandem to provide management with customized project reporting.
- Complete budget forecasting before the start of a project: We help our clients build zero-based budgets, along with other planning tools, to set project costs and thresholds before project implementation. We can forecast and re-forecast actions throughout projects, giving management the clearest picture of financial performance, so they can adjust implementation strategies.
- Identify KPIs: Clients can provide key performance indicators, and we can quantify performance using general ledger activity. We also help clients identify metrics to track project performance. Whether measuring cycle times, rework, labor hours or machine downtime, we have the acumen to measure processes and provide management with operational and financial metrics.
- Run reports: We maintain a suite of accounting reports and tracking spreadsheets during project accounting engagements. This can be a time-intensive task, and by working with Lavoie, clients are able to focus on their operations and leave the report generation to our staff. The net result is that clients’ staff members can focus on project implementation or other revenue generating activities.
- Establish cost codes: Naming conventions, number schemes and organization are all important aspects of generating cost codes. We have experience creating these systems and can help clients customize cost codes to mirror their operations. Organizing expenses and displaying them effectively in summary reports is key for effective decision-making.
- Forecasting accuracy: Analytics, forecasts and projections are important for planning purposes and adjusting project implementation plans. We create these types of reports using standard and customized templates while providing insight into the numbers and their implications for projects and organizations as a whole.
Project Accounting Software
We partner with a variety of high-end service providers for project accounting software including Microsoft, Sage and Workday. These systems allow for the tracking of labor, machine maintenance, facility costs and elements of cost of goods sold, or cost of sales. These software systems help manage cash flow, track or align invoicing and reduce manual efforts in project accounting. We leverage these systems and our experience to provide clients with the optimal project reporting.
Why Choose Lavoie
We provide transparent, highly effective project-based services that improve the efficiency and effectiveness of clients’ operations. Communication is critical for success, and clients have access to the right personnel including our senior leaders. We only take engagements where we know we can add value, leveraging the latest technology, accounting best practices and methodologies to help clients scale their operations and meet their objectives.
Contact Us Today
"*" indicates required fields
Complimentary Business Assessment